The location of the hole on the putting green is not a matter covered under the Rules of Golf. However, when setting such locations, various specific points should be considered.

There must be enough putting surface between the hole and the front and the sides of the green to accommodate the required shot. For example, if the hole requires a long iron or wood shot to the green, the hole should be placed deeper in the green and farther from its sides than would be the case if the hole requires a short pitch shot.
In any case, it is recommended that the hole should be positioned at least four paces from any edge of the green. In addition, an area of two or three feet in radius around the hole should be as nearly level as possible. In no case should holes be positioned within three paces of a very severe slope or ridge or of a recently used hole.

In general, there should be a balanced selection of hole positions for the entire course with respect to left, right, central, front and back positions and six quite difficult, six moderately difficult and six relatively easy positions is recommended. One should also try to keep a balance of using the left and right of the green, e.g., first nine, four to the left, four to the right and one in the centre. The second nine should be similar.

Finally, in order to observe the Rules of Golf, the greenskeeper who cuts the hole must make sure that any hole-liner does not exceed 4¼ inches in outer diameter, and if possible, any liner must be sunk at least one inch below the putting green surface.